Don't Play Politics With GET-Fund - NDC

Accra, Aug. 7, GNA - The former Minister of Information and Communications, under the National Democratic Congress (NDC) administration, Mr John Mahama on Thursday said the ruling New Patriotic Party (NPP) Government need not to play politics with the Ghana Education Trust Fund (GETFund) deductions.

He said the claim by the National Union of Ghana Students (NUGS) that the fund was in arrears of over 400 billion cedis was accurate. The former Minister, who is now the Director of Communications of the Minority NDC, said Nana Akomeah, Minister of Information and Mr Yaw Osafo-Maafo Minister of Finance had on separate occasions made factually incorrect statements on the GET-Fund deductions that imputed misappropriation on the part of the former government.

Mr Mahama was addressing a press conference in reaction to a similar one by Nana Akomeah, who had asked the NUGS to ask the previous NDC government where the 108 billion cedis balance of the GETFund was not even correct by the Ministers own calculations.
He said if Nana Akomeah's calculation were anything to go by the balance would have been 72 billion cedis.
He said Nana Akomeah was reported to have said the total deductions or accruals from June 2000 to December 2000, was 168 billion cedis as per VAT records against the payments and the 65 billion cedis left in the GETFund account, indicated an outstanding balance of 103 billion cedis unaccounted for at the end of 2000 was incorrect.
"The Minister of Information does not know what he is talking about because at a press conference on July 8, 2003, Finance Minister Mr Osafo-Maafo himself stated that, even though, the past administration instituted the GETFund and the law passed in August 2000, no account was opened for the Fund and no monies were actually paid into any account for operations".
The NDC Communications Director said the different statements on the same issue were worrying.
Mr Mahama said Nana Akomeah's assertion that the 12.5 per cent VAT rate became effective in June 2000 and deductions into the GET-Fund began accordingly was factually incorrect.
He explained that the GET-Fund Act was passed in August 2000, given Presidential assent on August 25, and Gazetted on September 1, 2000. "This means only four months collection could have been available for the GETFund."
Quoting from the 2002 Budget Statement (page 106, appendix table 2), Mr Mahama said 32 billion cedis was paid into the GETFund in 2000, which contradicted both Mr Osafo-Maafo's position and that of Nana Akomeah.
Mr Mahama said "if total deductions or accruals for the GETFund for the year 2000 should by, his calculation, have been 168 billion cedis and payments to SSNIT and University of Ghana, Legon totalled to 31 billion cedis and the actual amount left in the account was 65 billion cedis, then the outstanding balance that is unaccounted for is 72 billion cedis and not the 103 billion as quoted in his press statement."
On Nana Akomeah's assertion that until now nobody knows where the money is, Mr Mahama said the outstanding balance was paid into the Consolidated Fund.
Quoting again from 2002 and 2003 budget statements (appendix tables two and three, respectively) the NDC Communications Director debunked the government's claims that 206 billion cedis was paid into the Fund in 2001 leaving a balance of 108 billion cedis.
Mr Mahama said based on the budget figures, in 2001, 1,964.1 billion cedis VAT was collected, the GET-Fund, therefore, ought to have yielded 392.82 billion cedis but 140.0 billion cedis was paid, leaving an outstanding balance of 252.82 billion cedis. He said Nana Akomeah's claim that for 2002 fiscal year 336 billion cedis was paid into the Fund leaving a balance of 65 billion cedis was inaccurate.
Mr Mahama said the Budget statement indicated that 2,308.8 billion cedis VAT was collected, the Fund should have been paid 461.76 billion cedis.
Out of this amount, 164.6 billion cedis was paid in 2002 and according to the Minister of Finance, 138.367 billion cedis was paid between March 2003 and July 2003 leaving an outstanding balance of 158.793 billion. The Bole MP said the total GETFund arrears for 2001 to 2002 ought to be 411.61 billion cedis and not 173 billion cedis as quoted by the Minister of Information.
On government's attempt to defer payment to the GETFund account, Mr Mahama said the Act establishing the fund was explicit and did not admit of deferments.
He said Section 4(2) of the Act states; "the Value Added Tax Service shall within 30 days of receipt of Value Added Tax Revenue pay directly into the bank accounts opened under Sub Section (1) the proportion of the VAT revenue that is required to be paid into the Fund."
In the absence of another Act of Parliament amending or repealing Section 4(2) of the GETFund Act, any deferment of payment is illegal and the National Union of Ghana Students (NUGS) or any Ghanaian have a right to challenge it in a competent law court, Mr Mahama emphasised.